A sudden wave of selling hit crypto markets in the early hours of Friday, as reports of an Israeli airstrike on Iran set off fresh jitters. Bitcoin sank 5%, slipping under the $104,000 mark. Altcoins fared worse, with losses ranging from 6% to 9%. Based on reports from Coinglass, more than $1 billion was wiped out in liquidations, over $1 billion of which were long positions.
Rising Tensions Shake Global Markets
According to market watchers, the strike prompted a swift move into safe assets. S&P 500 futures tumbled 1.9%, while oil and gold jumped sharply. WTI crude climbed more than 12%, reaching about $77 per barrel. Gold surged past $3,400 an ounce as investors sought shelter.
Crypto Traders Feel The Heat
Arthur Hayes, the ex-CEO of BitMEX, warned of rough waters ahead. “Hold on to your butts out there, degens,” he wrote after the crash. He also pointed to US President Donald Trump’s planned tariffs as an added layer of risk. Ethereum slid 8% down to $2,505, right at a key support level. Other coins fell up to 10% in just a few hours.
BREAKING: S&P 500 futures extend losses to -1.9% following Israel’s attack on Iran. pic.twitter.com/QaLtjbcii6
— The Kobeissi Letter (@KobeissiLetter) June 13, 2025
Safe Havens Caught In The Crossfire
Based on reports, gold and oil didn’t hold back. Oil prices have climbed about 30% since May lows, analysts say. Anyone betting on lower inflation or early rate cuts may have to rethink things. Gold’s climb suggests that many feel uneasy about what comes next. Even so, some expect this spike to calm once tensions ease.
What Comes Next For Crypto
Short-term views remain mixed. Some traders see this as a knee-jerk reaction and expect a rebound once headlines fade. Others warn that the US CPI release later this week could add another twist. Inflation data could either fuel more selling or pave the way for relief if numbers come in cooler than expected.
Volatility is back with a vengeance. Over the past weeks, markets were already on edge amid chatter of higher interest rates and global conflicts. Now, with the Middle East front in focus again, big swings may stay in place. Analysts even suggest Bitcoin could dip to $95,000 if selling continues to gather steam.
A $1 billion wave of liquidations isn’t small. At the same time, the speed of the move may leave some traders hoping for a quick bounce. Watching safe-haven assets, US economic data, and any new developments in the Iran-Israel tensions will be key in the hours and days ahead.
Featured image from Stratfor, chart from TradingView